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P&G to Pitch Value of Its Brands to Shoppers as Inflation Spikes, CEO Says

Published 13/07/2022, 17:08
© Reuters.
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(Bloomberg) -- Procter & Gamble (NYSE:PG) Co. Chief Executive Officer Jon Moeller said the maker of household goods needs to sharpen its marketing message to consumers amid worsening economic conditions.

The company is focused on daily-use goods such as Dawn dish-washing liquid and Head & Shoulders shampoo, and says the efficacy of its products such as Tide laundry detergent help customers save on energy. While this should keep demand high, P&G needs to do more to explain why it delivers more value than competitors -- even if the prices are higher at times.

“We need to be even more deliberate on communication of the value that our brands provide consumers,” Moeller said at an online P&G event on Wednesday.

The Cincinnati-based company also needs to make sure entry-level products are affordable for consumers with less purchasing power, he said. 

US inflation quickened to 9.1% in June, the largest gain since the end of 1981.

Moeller added that P&G is working to strengthen its supply chain since it currently can’t meet strong demand for some of its products in certain regions.

The maker of Pampers diapers and Downy fabric softener is scheduled to report earnings on July 29. P&G shares fell 12% this year through Tuesday’s close, compared to a 20% slide for the S&P 500 Index.

©2022 Bloomberg L.P.

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